Federal Reverse

The monetary policy of the US Federal Reserve (Fed) is again of utmost importance for financial market action, and in particular for those trading and holding gold. On the one hand, the Fed is pushing short-term interest rates higher, making holding gold costlier: The higher the interest is, the higher is the foregone income that could have been earned by holding interest-yielding assets instead of gold. As a result, the demand for gold and thus its market pricetends to go down if and when interest rates go up . . . .